Ethereum fell by 21% in a month

Over the past month, Ethereum ETH $2,775.14 Bridged Ether (StarkGate) 4.18% Market capitalization $0.24 billion VOL. 24 hours $1.79 billion has fallen by 21%, but the market is starting to show signs of a possible reversal. Despite last week’s negative trend, increased activity from retail investors and derivatives traders may help ETH recover its position.

The main reason for the recent decline was a reduction in institutional positions. According to Glassnode, about 14,000 ETH worth $ 37.7 million were withdrawn from the Ethereum Spot ETF between February 10 and 15, indicating that major players are taking profits. However, analysts suggest that after the correction, institutional demand may resume at the beginning of the new trading week.

While large investors were exiting the market, retail buyers in South Korea and the United States continued to actively purchase Ethereum. The Korea Premium Index, which tracks the level of demand on Korean exchanges, has remained steadily above zero since December 14 and currently stands at 4.7, indicating strong local interest in ETH. In the United States, the situation is less pronounced: The Coinbase Premium Index shows a value of 0.02, which also indicates a predominance of buyers, but at a lower level.

Traders in the derivatives market are also supporting growth. The Taker Buy-Sell Ratio reached 1.033, indicating a predominance of buyers. Additionally, the positive Funding Rate (0.0090) indicates that traders are willing to pay a premium for maintaining long positions.

If the growth in buying activity from retail and futures traders continues, ETH may return to an uptrend. Restoring the confidence of institutional investors will also be a key factor that will determine the further dynamics of the cryptocurrency.